Why I Pay Myself First …
  1. Because I am planning to have a “last day of work” and do not want to go back. The operative word here is “planning,” not “hoping,” “praying,” or “dreaming.”
  2. Because while I am cute (and you are too), this fine will not last forever and I want something tangible to show from all my years as a “working girl” besides hot accessories and glamorous clothes.
  3. Because I love opening up my bank statement and seeing my money grow. Growth is a measure of progress and an increase in duckets is a fabulous thing.
  4. Because I love the peace of mind that comes from knowing that if I lose my job today, I will  sleep soundly tonight.
  5. Because paying for the needs of my future self is an act of self-care—financial self-care.
  6. Because paying myself first gives me an excuse to do my booty shake dance in front the mirror wearing a smile and nothing more. (bad girl)

How I Pay Myself First

1.     Set a Goal

I start with an “emergency fund” savings goal in mind. I calculate how much money I want to save; there are many rules of thumb for this, but I create the goal by thinking I want to my “emergency fund” to be  between 1-2 years worth of my living expenses.

2.     Work Backwards

Once I know my annual savings goals, I divide that number by 12 to get my monthly savings goals and then divide that number by two for the bi-weekly breakdown. I actually keep a post-it with this magic number in my wallet and each time I go to the bank, I take a look at it for focus and accountability. (I still do banking in person. I’m a dinosaur, but it works for me).  If you use online banking, automate this deduction.

3.     Don’t Touch This Money Unless It’s An Emergency (A Real Emergency)

Let’s be clear: a deep discount on some shoes with a red bottom (or any other color) does not constitute an emergency. A Groupon deal for a weekend trip to Antigua, though tempting, is not one either. Medicine that is not covered by your insurance, a missing part for your leaky car, back taxes, and the money that you owe your bookie—yeah, great candidates for dipping  into the emergency fund.

 But I Have Debt!

So what? Still pay yourself first. You need this money to weather the slips, trips, and falls of life. Your emergency fund guards against getting yourself deeper into debt in the event that sickness, job loss, divorce, an unexpected pregnancy, or death come.

How much do you need for your emergency fund? 

If you’re waiting for a sign that it’s time to make a change, consider this it. Money Therapy may be just what you need to break through your financial blocks and release your money guilt and shame.     
 

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